Have savings account in bank, but did not maintain minimum balance? Hefty fines imposed
Savings account minimum balance penalty: PSU banks have a rule in regard to maintaining minimum balance that a savings account holder must keep and avoid a penalty.
Savings account minimum balance penalty: PSU banks (SBI, Canara Bank, Syndicate Bank, Bank of Baroda, etc) have a rule in regard to the savings account minimum balance that an account holder must follow to avoid penalty. Generally, a savings account holder of any PSU bank, maintains the minimum required average balance but there are some instances when a savings account holder fails to maintain that specific amount in his or her account. Notably, the number of these account holders is massive. Yes, a huge number of people have paid penalty for not maintaining minimum balance if we go by the Ministry of Finance information given by the MoS Finance Anurag Thakur in the Lok Sabha.
The Minister of State (MoS) Finance Anurag Thakur informed the Lok Sabha in a written reply to a question that in the financial year 2017-18, SBI or State Bank of India and other 17 PSU banks received a humongous Rs 3,368.42 crore as penalty from its savings account holders for not maintaining the minimum balance! Yes, you read that right!
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Amazingly, the MoS Finance further revealed that in the financial year 2016-17, the same amount for PSU banks was just Rs 790.22 crore. Means PSU banks' earnings from the penalty for not maintaining the average minimum balance in savings accounts has gone up more than 326 per cent!
However, things have changed a little now. In his written reply in the Lok Sabha MoS Anurag Thakur further revealed that PSU banks' earnings from the savings account minimum balance penalty has gone down drastically in the current financial year. Thakur said that SBI has changed its SBI savings account minimum balance penalty from 1st October 2017. Now, it levies less penalty on the SBI savings account minimum balance penalty.
The MoS Finance also informed the Lok Sabha that one who has bank deposits in a basic savings account, need not follow the savings account minimum balance rule of the bank. Savings account opened under the Pradhan Mantri Jan Dhan Yojana or PMJDY doesn't require from the account holder to follow the savings account minimum balance rules.
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